Erste Group Bank Ag · VIE:EBS
Erste Group Bank — FY2022 Earnings Presentation
22 slides from Erste Group Bank's earnings presentation, Feb 28, 2023
Slide 1: Annual Results 2022
PRESS CONFERENCE, 28 FEBRUARY 2023 Annual Results 2022 Willi Cernko, Chief Executive Officer Stefan Dörfler, Chief Financial Officer Alexandra Habeler-Drabek, Chief Risk Officer Ingo Bleier, Chief Corporates & Markets Officer
Slide 2: GDP 2022: Better than expected economic growth
GDP 2022: Better than expected economic growth EUROZONE +3.5% Erste region Ø +4.0% +2.5% +1.7% +4.7% +4.6% +4.8% +6.1% +2.3% Source: Erste Group Research 2
Slide 3: GDP 2023: Clearly lower growth, but no recession
GDP 2023: Clearly lower growth, but no recession EUROZONE +0.6% Erste region Ø +1.1% +0.2% +1.5% +0.6% +1.0% +2.1% +1.0% +1.6% Source: Erste Group Research 3
Slide 4: Budget deficit and public debt
Budget deficit and public debt 2022 2023e Maastricht criteria Budget deficit Public debt In % of GDP In % of GDP AT CZ SK RO HU HR RS 78 77 80 74 71 70 70 67 -1 60 60 60 55 53 -2 -1.8 50 45 44 47 47 -2.5 -3 40 -2.9 -3.1 -3.2 -3.5 -3.5 30 -4 -3.8 -4.0 -4.1 -4.4 20 -5 10 -5.5 -6 0 -6.1 -6.1 AT CZ SK R
Slide 5: EU funds until 2030 for the region
EU funds until 2030 150 billion euros for the region Cohesion and recovery funds €27.3 bn €18.4 bn Green transition €4.5 bn Digital transformation €26.7 bn Social, economic and €58.2 bn institutional development €14.6 bn 5 Source: EU funds MFF 2021-2027 EU share (European Commission data) and EU fun
Slide 6: Inflation momentum should decline further
Inflation momentum should decline further 2022 2023e 2024e 2025e EUROZONE Ø In % 2022: 8.4% 2023e: 5.6% 18.5 2024e: 2.3% 2025e: 2.0% 15.1 14.5 13.7 12.8 12.0 11.9 11.8 11.1 10.7 10.4 8.6 7.0 7.4 6.0 6.2 5.0 5.0 4.3 4.1 3.6 3.5 2.8 2.4 2.1 2.5 2.5 2.0 AT CZ SK RO HU HR RS Source: Erste Group Research
Slide 7: Key interest rates in CEE: central banks set early hikes
Key interest rates in CEE: central banks set early hikes CZ HU PL RO RS Eurozone (AT, SK, HR) In % 14 12 10 8 6 4 2 0 21 21 21 21 21 21 22 22 22 22 22 22 23 20 20 20 20 20 20 20 20 20 20 20 20 20 1. 3. 5. 7. 9. 1. 1. 3. 5. 7. 9. 1. 1. .0 .0 .0 .0 .0 .1 .0 .0 .0 .0 .0 .1 .0 01 01 01 01 01 01 01 01 01
Slide 8: Unemployment rates: generally at low levels
Unemployment rates: generally at low levels 2022 2023e In % 9.4 9.2 6.8 6.8 6.1 6.3 5.6 5.8 4.8 4.6 3.6 3.7 2.9 2.4 AT CZ SK RO HU HR RS Source: Erste Group Research 8
Slide 9: Risk costs remain at low level
Risk costs remain at low level Risk costs Crisis-induced performing risk provisions In basis points of gross customer loans In EUR mn Macro Covid Ukraine 78 928 773 56 734 15 15 9 9 117 2 41 -4* 2015 2016 2017 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 * Net release of risk provisions 9
Slide 10: NPL ratio at historic low of 2.0%
NPL ratio at historic low of 2.0% In % NPL ratio NPL coverage ratio 94.6 90.9 2.4 2.0 Dec 2021 Dec 2022 Dec 2021 Dec 2022 10
Slide 11: Operating income increases significantly
Operating income increases significantly In EUR mn +10.7% 8,571 7,742 5,951 4,976 Net interest income 2,304 2,452 Net commission income Other 462 168 2021 2022 11
Slide 12: Loan demand remains strong
Loan demand remains strong In EUR bn +12.1% 202.1 180.3 Dec 2021 Dec 2022 12
Slide 13: Solid deposit growth
Solid deposit growth In EUR bn +6.4% 224.0 210.5 Dec 2021 Dec 2022 13
Slide 14: Inflation causes increased operating expenses
Inflation causes increased operating expenses In EUR bn +6.2% 4,575 4,306 2,668 2,578 1,180 1,356 Personnel expenses Other administrative expenses 548 551 Depreciation and amortisation 2021 2022 14
Slide 15: Net result increase reflects strong operating result
Net result increase reflects strong operating result In EUR mn +12.5% 268 141 829 2,165 178 1,923 2021 Operating Operating Risk costs Taxes and 2022 income expenses other result 15
Slide 16: Strong capitalization enables financing of the economy
Strong capitalization enables financing of the economy Common equity tier 1 ratio (CET1) in % (CRR, final) 14.2 14.5 14.2 13.5 13.7 12.8 12.9 11.4 12.0 11.2 10.6 9.2 9.4 8.3 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 16
Slide 17: Corporates and Markets segment
Corporates and Markets segment Corporate loans Issuances Net loan stock, in EUR bn Total volume, in EUR bn Top FIG & SSA Bond +18% +23% Underwriters in CEE Region (2022) 72.7 105.0 1 JP Morgan 61.6 2 Citigroup 85.0 3 4 BNP Paribas 5 UniCredit EUR 2.2 bn of new green loan in 2022 Dec 2021 Dec 2022 20
Slide 18: George Business: Next Level Business Banking
George Business Next Level Business Banking The corporate customer platform of the future 18
Slide 19: 9 million customers rely on George
9 million customers rely on George One in three products purchased through George Year-on-year growth 2.6 mn +9.6% 2.3 mn +12.1% 1.2 mn +11.2% 725,000 +18.3% 1.7 mn +19.0% 450,000 +26.2% 19
Slide 20: Solid growth in securities savings plans & loans to customers
Solid growth in securities savings plans & loans to customers Securities savings plans Housing loans New housing loans Stock, Stock volume Volume of new business in the quarter in quantities In EUR bn In EUR bn +8.3% 943,000 +8.3% 871,000 71.7 66.2 -57.8% 4.9 4.9 5.1 3.0 2.1 Dec 2021 Dec 2022 Dec 20
Slide 21: Purpose
@) x PURPOSE 40°
Slide 22: Erste Group
ERSTES Group